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Report: Trump considering nominating Fed official to head FSB

President Donald Trump's administration is considering nominating the Federal Reserve's Randal Quarles to lead the Financial Stability Board, according to the Financial Times, which cited unnamed sources.

Quarles is already a member of the FSB board in his capacity as the Fed's vice chairman for supervision, a position he has held since Oct. 13, 2017. SEC Chairman Jay Clayton, New York Fed President William Dudley and Treasury's Undersecretary for International Affairs David Malpass are also on the international board.

The FSB, created in 2009 to promote coordination among international financial regulators, is currently led by Bank of England Governor Mark Carney, who is expected to leave his FSB chairmanship at the end of 2018.

The possible nomination could run into issues from Asian countries who might want one of their representatives chairing the FSB for the first time, while others could raise concerns that the Fed Governor may be too willing to ease regulations for financial institutions, the Financial Times reported.

Quarles has pushed back against such claims, saying March 5 that he and other U.S. regulators are undertaking a review to see whether they can make post-crisis regulations more efficient. "I don't view that as relaxing regulation," he said. "I view that as improving it."

He has backed, for example, an interagency effort aimed at revising the Volcker rule, additional disclosures on how the Fed conducts stress tests for the largest U.S. banks and efforts to make further distinctions between non-globally systemic important banks and G-SIBs.

The FSB's nomination committee, made up of seven members, is responsible for making the decision on replacing Carney, according to the Financial Times. The Treasury Department, the Fed and the FSB all declined comment to the Financial Times.